FINSUM + Magnifi: This New Treatment Spells a Turnaround for Biotech Behemoth
(March 2021)
Vertex Pharmaceuticals was a shining star amongst the already bright biotech industry. In the nearly decade-long stretch between 2012 and 2020, it quadrupled the growth in the S&P 500. But as of late Vertex is slipping, down 25% since October since news broke about the halt of a new drug treatment. A drug intended to treat lung and liver disorder AATD was a bust, which caused the company that made its mark treating cystic fibrosis to slip. However, the fundamentals that allowed Vertex to climb in the 2010s are still present. Vertex continues to innovate in cystic fibrosis, with a new drug entering phase three of research, and Vertex has another play with AATD. It plans to enter the new drug into play for phase two of treatment in Q2. The company has considered acquisitions outside the company, but Vertex has assured investors of a robust development pipeline.
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